It’s critical for real estate investors to understand Net asset value ("NAV") and how it's calculated. NAV helps investors track changes in the value of the asset from its initial purchase price. Unfortunately, it isn't commonplace for real estate fund managers to clearly disclose this - Jasper plans to lead the way in this area.
We calculate the NAV of our funds at the end of each month. To determine the NAV, we take into account:
the most recent third-party valuation of the value of properties within the fund
available cash on hand and any other current assets
any outstanding debt and the cost of any fixed or planned capital expenses
If you recently invested in a fund and are wondering why your Net Asset Value (NAV) is less than your initial investment amount? Click here to understand NAV ROI.
As a practical example of how NAV is calculated at Jasper, let's take a look at the period ending 31 Dec 2020 for the Industrial Income Plus Fund.